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Bean Counter's Blog

We are pleased to provide a variety of resources on accounting, taxation and other related subjects that we hope will be helpful to both individuals and businesses.

Browse through our Quick Tools resource menu at the right for current news from the Federal and Provincial Governments and the CRA. Take advantage of our Facts, Links and Forms resources along with our Calculator Suite. Have a question that isn’t answered here? We can help. Simply contact us by email or give us a call at 905-251-4868. We would be happy to meet with you for a free, no-obligation consultation.

What A Certified Bookkeeper Can Do For You

Hiring a certified bookkeeper is a smart business move

Many small businesses think they can easily maintain their own books. However, doing journal entries is certainly not fun. It is also wastage of an entrepreneur’s precious time.  Hiring a bookkeeper is an important decision for your business.

A bookkeeper is a key part of your management team.

Before you hire, ask yourself:

Do you only look at the price per hour?

Do you look at Certifications?  

Let’s determine the differences. 

1. Bookkeepers with certifications are required to write exams and have minimum standards which need to be met on an annual basis, for example continuing education credits.

2. An uncertified bookkeeper who simply posts an ad looking for clients may not have the professional qualifications, training or experience which may jeopardize your books.  The outcome of not hiring a certified bookkeeper may cost your business more money in the end.

It is good practice to hire a bookkeeper who takes the time and additional cost to carry on certification training which demonstrates the commitment to their own business and profession.  They are interested in developing relationships and passing on their knowledge to ensure that your business is receiving up-to-date accounting and taxation information.

Evaluate a bookkeeper before you hire because you want to develop a long term relationship built on trust which will help your business to prosper as well as achieve profitability and success.   Check what certifications they have acquired.

Working with a certified bookkeeper will save you precious time and money in the long run.

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Business Funds versus Trust Funds

Mary and Joe Brown own a computer business with 2 employees.  Mary completes the bookkeeping and assists Joe as a computer tech.  They opt to remit HST quarterly.  Mary has minimal bookkeeping experience and completes the books once a quarter.  Joe and Mary purchase computer inventory whenever necessary and make large shareholder withdrawals.  At the end of the quarter, Mary realizes that they do not have the funds necessary to pay the Receiver General so she neglects to file the HST.  The Receiver General sends the business a notice and Mary netfiles the first and second quarter.  Mary realizes that due to the large inventory and shareholder withdrawals, the business does not have the funds to pay the trust monies (HST), interest and penalties.

In the above scenario, Mary and Joe are spending Trust Funds and placing their business in jeopardy. 

Solution

Mary and Joe can open up a sub-account with their bank.  On a monthly basis schedule to have transferred a sum of money (an average of your quarter) so that there is a reserve to pay their trust funds.  

The above scenario is very common and it must be stressed that trust funds should not be used for business expenses.  If a business has to use trust funds to pay the expenses, the owners or shareholders need to evaluate their financials and make necessary spending adjustments in order to have a thriving, healthy business. 

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